Packer 'ignored father's warnings'

AUSTRALIAN media heir James Packer told a court today that he ignored the warnings of his tycoon father Kerry and remained a 'believer' in failed telecoms company One.Tel despite its growing financial problems.

On his second day in the witness box, 34-year-old Packer said his father had expressed doubts about the company's cash forecasts in January last year, four months before One.Tel went into the hands of receivers. The collapse cost Packer companies their entire investment of A$327m (£121m)

'I would describe him as being sceptical about the company's position to getting to a cashflow break-even point,' the younger Packer said. He added that he did not share his father's doubts, and believed the promises of One.Tel founder and former close friend Jodee Rich. 'At that stage I was still a believer,' he said.

Rich was clearly attempting to attract Packer's attention from the public gallery yesterday. Their eyes met briefly only once.

The inquiry is investigating One.Tel's corporate conduct in its dying days before its A$700m failure a year ago. James Packer and Rupert Murdoch's son Lachlan, who spearheaded News Corp's A$300m investment in the venture, have said they were 'profoundly misled' over the state of its finances.